The Jefferson city council approved on July 28 an amount not to exceed $750,000 in tax increment payments (TIP) for Jcorp Inc, the developer of the 44-unit Water Tower subdivision in the northwest quadrant of the city.
The payments will act to abate property taxes on the improvements to the property. The agreement allows for two phases. The first includes a 4-plex of town homes and two buildings with eight condos each, with the TIP on increased valuations as of Dec. 1, 2016, compared to Jan. 1, 2015. That will continue for seven fiscal years.
The second phase of the project includes another 24 rental units, with the TIP on increased valuations as of Dec. 1, 2017, as compared to Jan. 1, 2016. That will continue for seven fiscal years, so the second phase would extend longer than the first. However, the total amount abated as TIPs will not exceed $750,000.
One the maximum $750,000 or seven years has been reached, the property will be fully on the tax roles.
The council also approved the third reading adopting planned unit development zoning for the project and the final plat for Water Tower subdivision. The council okayed replacing a 4-inch water line on Walnut St between Central Ave and W. Mahlon at a cost of $73,950. The new main will serve Water Tower subdivision.
Duane Jensen of Jcorp was at the Tuesday meeting. He said construction on the first phase would begin very soon. There will be opportunities for local contractors and subcontractors to participate in the project, he said.
